Business Session 1 : The Wagering Landscape. Industry Trends and Strategies

Transcription

1 Business Session 1 : The Wagering Landscape Industry Trends and Strategies Winfried Engelbrecht-Bresges Chairman, Asian Racing Federation Vice Chairman, IFHA CEO, The Hong Kong Jockey Club 1

2 Wagering is the lifeblood of racing Presented in

3 Global racing betting volume is flat Source : IFHA Annual Report 3

4 MILLION Turnover from 2009 to , Turnover: Change from 2009 (at Constant Currency) 3, , , ,000.0 Japan Great Britain Australia Hong Kong USA France -2,000.0 Source: IFHA, Racing Australia(RA), UK Gambling Commission(UKGC) Statistics 4

5 Turnover in 2015 Country % change in 2015 turnover over 2014 Japan +3.6% Australia +2.8% Hong Kong * +1.5% US +1.18% UK # +11.4% France -1.8% 5

6 I. Economic conditions Markets 2016 Real GDP Growth Forecast Hong Kong 2.2% Japan 1.0% South Korea 3.2% Singapore 2.9% Australia 2.9% New Zealand 2.4% South Africa 1.3% Source of Forecast : International Monetary Fund World Economic Outlook, Oct

7 IIa. Competition from casino gaming Casino Yield (USD $ Mil) E 2015F 2016F 2017F CAGR from CAGR from 2009 to to 2017 Global 71,824 74,829 71,714 83, , , , , , , , % 3.9% Asia-Pacific 16,332 19,878 21,084 33,887 46,564 51,777 59,074 58,537 47,615 50,149 52, % 5.0% 7 Source: GBGC

8 Casino gaming by market in

9 Casino income streams VIP MASS Macau Casinos 80% VIP 20% MASS 9

10 Gross gaming revenue plunged in Macau Macau Casino gaming revenue end 2015 MOP (billion) Gross gaming revenue % drop Total % VIP market % Mass market % 10

11 IIb.Competition from Sports Betting Presented in

12 Sports betting turnover exceeded Horse Racing betting turnover in 2014 Turnover (USD $ Mil) E 2015F 2016F 2017F CAGR from 2009 to 2015 CAGR from 2015 to 2017 Race Betting 132, , , , , , , , , , , % 1.5% Sports Betting 108, , , , , , , , , , , % 7.7% Lotteries 208, , , , , , , , , , , % 5.5% Other Activities (excl. Casinos) 42,172 43,013 43,587 45,120 47,053 47,534 49,112 51,179 52,695 54,135 55, % 2.5% 12 Source: GBGC

13 In-play Sports Betting 13

14 IIc. Fantasy Sports Betting - derivative product of Sports Betting 14

15 Fantasy Sports may have global appeal 15

16 IId. The biggest competition comes from Unregulated and Illegal Betting 16

17 The global illegal betting market is likely to be as big as USD500 billion in transactions with Asia the driver Market Offshore and illegal betting in Asia Illegal Turnover Global racing + other sports USD500 billion ++ Asian racing + other sports Hong Kong racing + other sports USD350 billion USD64 billion (Football $40b, Racing $12.78b, other $12b) (Source : HKJC analysis) 17

18 Industry Trend Betting operations becoming more global New Market Entrants c 18

19 Betting operations becoming more global New Market Entrants Global Expansion by acquisition c 19

20 Betting operations becoming more global New Market Entrants Global Expansion by acquisition c Local Merger and Acquisition 20

21 Industry Trend migration to Fixed Odds betting 21

22 A$M Migration to Fixed Odds betting 12,000 10,000 Australian Race Wagering Turnover to ,000 6,000 4,000 2, Total Parimutuel Total Fixed Odds (TAB and Bookmaker) Source: Australian Gambling Statistics, Qld Treasury 22

23 A$M Migration to Fixed Odds betting 12,000 10,000 Australian Race Wagering Turnover to ,000 6,000 4,000 2, Racing Right 2. Parimutuel Betting Total Parimutuel Total Fixed Odds (TAB and Bookmaker) Source: Australian Gambling Statistics, Qld Treasury 23

24 140 Industry Trend Shift to digital technology Wireless Mobile Broadband Subscriptions (per 100 persons) Japan Great Britain Australia USA France OECD Source:OECD 24

25 Rising share of mobile betting HKJC Racing wagering HKJC football betting 25

26 Apps offer integrated and seamless experience 26

27 Industry Trend Commingling 27

28 Current state of Commingling 28

29 Next generation tote system to stimulate further growth 29

30 Commingling needs a next generation ITSP to unlock its full potential 30

31 Summary of competition and industry trends Competition from other forms of wagering Opportunities Casino for Growth gaming Sports and Fantasy Sports Betting Illegal and unregulated betting Economic Conditions Racing wagering industry trends Changes for the Supply of Wagering on Racing Betting operations becoming more global Migration to fixed odds betting Digital connectivity Commingling 31

32 What we have to do as an industry 1. Embrace technology to connect directly with customers and create Economic relevant offerings. Conditions Opportunities for Growth Changes for the Supply of Wagering on Racing 2. Develop new tote technology which supports a better customer experience. 3. Advance development of new Tote Protocol for commingling to leverage our strength in exotic bet types. 4. Concerted efforts to create and protect our IP rights nationally and internationally 5. A concerted effort by ARF and IFHA to fight illegal and unregulated betting. 32

33 Business Session 1 - Speakers Mr Bernard Saundry CEO, Racing Victoria Limited Mr Tom Ascher CEO, Longitude LLC Mr Patrick Jay Independent Consultant 33